LONDON, June 25 (Reuters) - Britain's consumers, rather thanits politicians, are more likely to bring about change in thecountry's taxation regime, the boss of its third-largest grocerJ Sainsbury said on Tuesday.
Several companies, including Google and coffeechain Starbucks have faced criticism from UK taxcampaigners over the way they structure their tax affairs,provoking consumer anger and pledges from political leaders toact.
Last week, leaders of the world's eight richest economiessaid they would take a tougher stance on tax evasion butpromised little in the way of specific new action at the end ofa two-day summit in Northern Ireland.
"It's much more likely that consumer action will changecorporations' attitude than government action because it will beso difficult to move the dial across international borders,"Justin King, chief executive of Sainsbury's, told delegates atthe British Retail Consortium's (BRC) Retail Symposium 2013.
He said if consumers changed where they shopped tomorrow,corporations would quickly change their attitude to tax.
"The things that bring about most corporations' Damasceneconversions is realising that actually it's hurting them intheir core franchise," he said.
King said the tax debate in Britain had shifted to twodistinct issues.
Firstly there was the "moral issue" of some companiesarranging their tax affairs so they do not pay their way butstill expect to benefit from what the tax system pays for, suchas education, health and roads.
Secondly there was the debate about the unfairness of taxbecoming part of the competitive dynamic, with internet playershaving an advantage over traditional retailers.
"As our industry is changing away from a property-intensiveindustry to one in which property plays a part but a much lesserpart than it has historically, our tax system, that raises localtaxes primarily on property, is exposed as an historicalanachronism," said King.
"It clearly has to change and is a legitmate debate for usand the BRC to be driving."
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